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Pooja, Lovely Professional University Unit 12: Analysis of Financial Reporting Framework

Unit 12 : Analysis of Financial Reporting Framework Notes

CONTENTS
Objectives
Introduction
12.1 Applications of Financial Reporting Framework
12.1.1 Top Management Reports
12.1.2 Middle Level Management Reports
12.1.3 Lower Level Management Reports

12.2 Strengths and Weakness of Accounting Framework
12.2.1 Strengths of Accounting Framework
12.2.2 Weakness of Accounting Framework
12.3 Summary
12.4 Keywords
12.5 Review Questions
12.6 Further Readings

Objectives

After studying this unit, you will be able to:

Describe the application of financial reporting framework
Identify the strengths and weakness of accounting framework
Introduction

The purpose of reporting is to provide the information needed by the concerned party. The
value of information is determined by how the information meets the needs of the users. This
information creates an atmosphere for internal decision makers. The communication of the
information between two or more parties through reports is known as reporting. Report is the
essence of the management information system.

Did u know? What are accounting reports?
Report is a statement containing facts and if they contain accounting information and data
they are called accounting reports.

So, report may be known as process of providing accounting information to those who needs to
make decisions. Report may be for the past, present and for the future developments.

12.1 Applications of Financial Reporting Framework

Accounting reports consist of financial statistics. Management cannot analyse all significant
facts regarding its business especially in case of large scale production where the business
operations are more complex in nature. Accounting reports helps to get full information about
the entire operative activity of the firm.

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